What are New York’s Car Insurance Requirements?

If you are a motorist in New York, you are required to have certain types of insurance coverage if an accident occurs. As is the case in other states, you are required to have liability insurance and uninsured/underinsured motorist coverage. Still, because New York is a no-fault state, you are also required to carry no-fault insurance, commonly referred to as personal injury protection (PIP) coverage.

If you have questions about the types of insurance you are legally obligated to carry under New York State law, or if you have been injured in an accident and are curious to learn more about your legal options for pursuing compensation, then contact one of our New York City car accident lawyers at Finz & Finz, P.C. today for a free case evaluation.

What Insurance Coverage Does New York Require?

Because New York is a no-fault state, you will typically turn to your personal injury protection policy to cover any medical expenses and/or lost wages that result from the accident. All drivers must carry no-fault insurance and liability insurance and uninsured/underinsured motorist insurance coverage.  Failure to possess the minimum amount of each type of coverage could result in legal penalties.

In New York, motorists are required to purchase and carry at least:

• $50,000 in personal injury protection coverage (no-fault insurance) per person
• $10,000 in liability insurance for property/vehicle damage
• $25,000 in liability coverage for injuries to one victim, $50,000 for multiple injured victims
• $50,000 in liability insurance for the death to one victim, $100,000 for multiple victims
• $25,000 in uninsured/underinsured motorist coverage for injuries to one victim, $50,000 for multiple victims

What Does Each Type of Coverage Pay For?

Each type of insurance covers something different. Let’s take a closer look at each one.

PIP/No-Fault Insurance

PIP insurance covers injuries you may have sustained in a car accident, regardless of fault. No-fault coverage will pay for your medical expenses up to the policy limit, 80% of your lost income, $25 per day for domestic help, and $2,000 in wrongful death benefits to the deceased’s family. You cannot receive benefits for pain and suffering under PIP. No-fault insurance only applies to bodily injury, not to vehicle damage, so if you sustain vehicle damage in an accident caused by another driver, you could still file a claim against the driver.

Liability Insurance

The purpose of liability insurance is to protect you if you cause an accident, and a claim is filed against you by the other driver alleging that you were at fault for the accident and demanding compensation. If you cause an accident, this insurance will cover damages to the other motorist’s vehicle. You are not permitted to use liability insurance to cover your own property damage or vehicle repairs, but it does protect you from having to pay for the other driver’s vehicle repairs out of pocket.

Uninsured/Underinsured Motorist Insurance (UM/UIM)

UM/UIM pays for damages if you are involved in an accident with an uninsured driver, a driver whose insurance does not adequately cover the damages, or if you are struck by a hit-and-run driver who you are unable to identify. Although New York has established minimums, you can always purchase additional coverage for extra protection.

What Are The Penalties For Not Carrying Auto Insurance?

According to the New York Department of Motor Vehicles, if you fail to carry the required minimum auto insurance in New York, you could face steep penalties. If you were involved in a crash and did not have the required amount of liability insurance at the time, then you could have your license and registration revoked for one year. You could also lose your license and registration for the same period if someone else caused an accident in your uninsured vehicle.

You could also face a fine of up to $1,500, even if you were not the driver of your uninsured vehicle. And to reobtain your license, you’ll have to pay a $750 fee to the DMV.

What If My PIP Coverage Isn’t Enough To Cover My Expenses?

Although motorists typically turn to their personal protection plan for insurance coverage after an accident, if you are seriously injured, your expenses may quickly exceed your policy limits, especially if you only have the minimum required amount of no-fault insurance.

If that is the case, you may be able to pursue compensation through a personal injury lawsuit against the at-fault driver. New York has a serious injury threshold that outlines the eligibility requirements for this type of legal action.

If you believe that you may qualify to step outside the no-fault insurance system, you should consult with one of our personal injury attorneys. Our attorneys will thoroughly review your case and discuss your legal options with you.

Through a personal injury lawsuit, you would be able to recover damages for:

• Medical expenses
• Lost wages
• Property damage/vehicle repairs
• Pain and suffering

How Our Car Accident Attorneys Can Help

To claim the benefits you deserve, you need experienced representation to help you navigate the legal process. Whether you are filing a claim with your own PIP coverage or need to seek additional compensation from the at-fault driver, our attorneys are here to help. We will work tirelessly to investigate the accident, gather evidence to support your case, document and calculate the damages you are owed, and aggressively pursue the compensation you need to recover.

Contact Finz & Finz, P.C. today at 855-TOP-FIRM or reach out to us online for a free consultation.